Sign up Australia
Proactive Investors - Run By Investors For Investors

European Lithium expecting valuable cash injection

The company expects up to receive $450,000 cash over the coming months.
European Lithium expecting valuable cash injection
Assay results from recent drilling are expected shortly

European Lithium (ASX:EUR) has taken a further step towards finalisation of the sale of its Paynes Find Gold Project to Cervantes Gold Pty (ASX:CVS) with both companies signing the formal sale agreement.

Significantly, the company can expect up to $450,000 of cash payments over the next few months.

Consideration for the transaction consists of cash and share capital in CVS as follows:

- $500,000 to be satisfied through the issue of 25 million shares in CVS, at a deemed issue price of $0.02 on completion of the transaction; and
- $500,000 in cash paid in instalments.

$50,000 of the cash instalments have now been paid, with the remaining payments being:

- $100,000 on completion of the transaction;
- $150,000 on the later of CVS completing a $1 million capital raising, or completion of the transaction; and
- $200,000 on the later of 60 days following the purchaser completing the $1 million capital raising, or completion of the transaction.

Tony Sage, chairman, commented: “The finalisation of this transaction not only injects funds into the company but also allows us to completely focus on the flagship Wolfsberg Lithium Project.”

European Lithium continues to focus on its Wolfsberg Lithium Project in Austria, where results were recently received from the surface drilling program in Zone 2.

The two drill holes recently completed show wide intersections of spodumene rich pegmatite and samples are being prepared for lithium assay, for which results are expected shortly.

The 100% owned Wolfsberg project has a JORC resource estimate of 6.3 million tonnes at 1.17% lithium oxide.

Zone 2 is outside the current resource estimate and it is believed that Zone 2 has the potential to mirror the current resource, paving the way for resource expansion.

View full EUR profile View Profile

European Lithium Ltd Timeline

Related Articles

Picture of area surrounding Paradox Lithium Project
May 07 2018
Cloud, Cane and LC South will be part of Anson's Paradox project with the claims being close to oil wells with historically recorded lithium values.
Gold bars and gold mining operation
March 28 2018
The AUD gold price is trading near its all-time highs at around A$1,750 per ounce.
Checking a Redmoor core sample
May 11 2018
The Redmoor project's inferred resource has 45,000 tonnes of contained tin equivalent.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use